Legal Implications of Corporate Misconduct: A Media Report Analysis

This case study analyzes a media report concerning corporate misconduct, identifying relevant legal principles such as tort law, contract law, criminal law, and corporation law. It examines instances of negligence, breach of contract, and potential criminal offenses committed by a company director, including failure to fulfill obligations and denying responsibility. The analysis also discusses the functions of law in ensuring predictability, encouraging ethical conduct, granting rights, imposing obligations, enforcing rights and duties, and providing remedies for injustice. The case study references specific instances from the media report to illustrate these legal concepts and their application in the context of corporate misconduct. Desklib provides a platform to access similar solved assignments and past papers for students.

Question 1- Laws relating to given media report are-
Law of tort- Law of tort relates to negligence. Whenever there is practice of negligence from
one person that causes harm to other individual, it comes under Law of Tort. Also when
someone does not understand its accountability towards another person and act in such way
that cause breach of obligations called negligence. There must occur breach of responsiblity
by someone towards some other person and causes harm that need remedies to restore
original circumstances Whittaker 20151.
Here in the given media report there are multiple instances of negligence. Hiring new
employee without informing or disqualifying former employee comes out to be negligence of
duty. Also being a director of a corporation and not paying the dues of employee is breach of
obligation "Torts: Procuring Breach Of Contract: Unenforceable Contract" 19292.
Corporation law –Corporation law deals with creation, organisation and administration of
corporations.Usually it relates to commercial and contract law "Corporate Law" 20193.
In the media report Mr. Mehajer denied his role as director by saying it a “typographical
error” which is clear breach of his role as a director. Being a director on records became his
obligation to respect his role at that place What Is Corporate Law? - Findlaw" 20194. Its is the
role of director to inform employee about their termination from job and clear all dues from
his side. In the case givenMr. Mehajer does not fulfilled any of these duties.
Contract law- This is the concerned with conclusion, implementation, termination or any
kind of flaws generated within contracts. Contract are legally binding agreement which
describes and recognise the role, rights and duties of person in contacts. To make them
legally binding and enforceable they require backing by legislative mechanism which is
provided by Contract law .
In the given media as mentioned eeaier there happened multiple instances which are
concerned with contracts. As it is given that Mr. Mehajer and Mr. Yan negotiated contracts
between them so there must be clearly defined terms from both sides. Howevergetting
undue influence by interpretating the terms of contract skewed towards personal benefits
also leads to breach of contract Schwartz and Scott 20035. As described by Mr Lee, they
have not produced any record of payments also leads to contract violation .
Criminal law –Company law has legal backing for its violation. Breaching company law will
be offence under Criminal law. Directors possess personal liability towards their acts of
breaching company law. Company law also mentions legal binding on director of fulfil his
personal liabilities and execute his duty to its best possible. However if there is breach of
responsiblity from director’s side, it will fall under the definition of criminal offence and will be
prosecute under criminal law Green 20036 .
In the given media report, Mr Mehajer denies his responsibility referring his name in as
director to be a typographical error Criminal Law - Open Textbook Library" 20197. There are
multiple instances where he denied his responsibility and acted in order to breach company
law. Breaching company law will make him criminal under Criminal law as company law has
legal backing. There are also instance of producing Cheque that gets cancelled. Producing
such cheques to pay for due also a act of criminal offence and amounts to fraudulent
practice by Mr. Mehajer that can land him to prison if guilty prov
1 Whittaker 2015
2 Torts: Procuring Breach Of Contract: Unenforceable Contract" 1929
3 Corporate Law 2019
4 What Is Corporate Law? - Findlaw 2019
5 Schwartz and Scott 2003
6 Green 2003
7 Criminal Law - Open Textbook Library" 2019

Question 2- Different functions law serve in present context.
 Ensures reasonable predictability in daily life means if you pay for any service or
good you will be provided with relevant service or good. It also ensures about the
quality of service to match the expectation of client.
For example in given media report it was reasonable prediction due to law(consumer
law) Corones 20098 ensures Mr. Yan about enforceability of contract from Mr.
Mehajer.
 Encourage and discourage certain conduct means law backs all those conduct
which are reasonable or negotiated under contract and discourages any type of
unethical conduct.
As in the given media report law encourages Mr. Yan to sue Mr. Mehajer for his dues
andit was also law which discourages Whelan 20139. Mr. Yan from opting unethical
ways to het his dues back. Prosecution of a former mayor in court is also enforced by
law which is discouraging Mr. Mehajer from further expoloiting Mr. Yan .
 Grants right and power to individual and group of people means legislation of
various specific laws were done to regulate and provide welfare to citizens.
In the given media report it has been given that Mr. Mehajer doesn’t paid dues to Mr.
Yan which is clear violation of rights of Mr Yan as he provided his service in
accordance with contract negotiated. Using contract law Mr. Yan became able to sue
Mr. Mehajer for dues.
 Imposed obligation on individual/organisation to meet their obligations means
procedures established by laws will be enforceable to make individual meet his
obligations. Denying legally binding obligation as under contract law etc has legal
backing the encourage individual/organisation to fulfil their obligations.
In the given example Mr. Mehajer is found to be accused of breach of his duty as
director by not paying dues and terminating employee without informing him.
However not meeting these obligation leads to legal proceedings against Mr. Mehajer
which can be punitive for him.
 Allows for enforcement of recognised rights and duties means all those rights
and duties which have given legal backing under various laws enforced or under
contract negotiated needed to be enforced by parties.
In the given report the responsibility of both the parties can be enforced by law as it
is evident by legal proceeding in court. All those provisions mentioned under contract
or covered under due process will be enforceable by various laws in action
 Provide remedies when injustice has been done means laws are enforceable by
various liable bodies usually judiciarywhich will be accountable to provide remedy for
any injustice occurred to anyone "Contracts. Remedies For Breach Of Contract. Recovery
Under Contract After Breach" 191210.
In the given case, it seems that Mr. Mehajer acts are breaching contract anddoing
injustice to Mr. Yan by not obligating provisions of contract. Non payment of dues
8 Corones 2009
9 Whelan 2013
10 Contracts. Remedies For Breach Of Contract. Recovery Under Contract After Breach 1912

even after that many years causes injustice to Mr. Yan , however there is law that will
provide remedy for the injustice as shown by the proceedings of court.
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